Follow the money.

Every business runs on one simple loop: money comes in, money goes out, and someone has to make sure more comes in than goes out. Let’s follow a single Watkins job all the way through — from winning the work to the cash landing in the bank.

Step 01 · Win itWinning the work

It starts with a price. Watkins works out what a job will cost and sends the customer a quote. If they say yes, that price is agreed — often with a purchase order, which is really the customer saying “we’ll pay you to do this.”

Step 02 · Money out firstSpending before earning

Here’s the catch: the work has to be done before anyone gets paid. Materials, labour, van fuel and a share of the overheads all go out first. The business is out of pocket until that invoice is settled.

Step 03 · Ask for paymentSending the invoice

Job done. Now Watkins sends an invoice — a formal request for payment — with payment terms such as “due within 30 days.” No invoice, no money: it’s the single most important piece of paper in the loop.

Step 04 · Money inGetting paid

When the customer pays, cash finally comes in. Money owed to the business by its customers is called accounts receivable — and politely chasing the late payers is a genuine part of the finance job.

Step 05 · Money out againPaying everyone else

Out of that money, Watkins pays its own suppliers — money the business owes is accounts payable — and, of course, wages. Finance makes sure the right people get the right amount at the right time.

Step 06 · The differenceWhat’s left

Whatever remains after all the costs is profit. If the costs were bigger than the money in, it’s a loss. Multiply that across hundreds of jobs a year and you have the whole business, in one number.

So…Why it matters

Finance’s job is to keep that loop turning smoothly: price the work well, control the costs, invoice promptly, get paid, and never run out of cash. Follow the money and you understand the entire company.